Arizona Real Estate License Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

When Peggy holds a 65% interest in the land co-owned with Paul, they are most likely holding title as tenants in common. This form of ownership allows individuals to have unequal shares of the property, which is evident with Peggy having a larger interest than Paul.

In a tenancy in common arrangement, each co-owner's interest in the property is separate and distinct from the others. Unlike joint tenancy, where co-owners must have equal shares and the right of survivorship applies, tenants in common can own varying percentages and do not have this survivorship right. Therefore, if one co-owner passes away, their share goes to their heirs rather than automatically transferring to the surviving co-owner.

Community property with right of survivorship and tenancy by the entirety are forms of ownership typically recognized for married couples, emphasizing equal ownership and rights of survivorship, which doesn't apply here as there's no indication that Paul and Peggy are married or have equal interests. Consequently, the most accurate representation of their situation is that they hold the title as tenants in common.